Climate change and green consumers in Bangladesh

As a developing market with significant potential, Bangladesh has been recognised by the United Nations Framework Convention on Climate Change (UNFCC) as one of the most environmentally vulnerable countries. In response to this challenge, the government of Bangladesh has implemented a series of initiatives aimed at promoting environmentally friendly and sustainable development. For instance, in 2002, Bangladesh became the first country to ban plastic bags after they clogged drainage systems during devastating floods. In January 2003, the government imposed a total ban on two-stroke three-wheelers in the capital city of Dhaka to reduce air pollution. Other initiatives include introducing four-stroke, compressed natural gas (CNG) auto-rickshaws, promoting the use of low-sulfur content coal, installing chimneys at a height of 120 feet in brick kilns, and encouraging the manufacture of concrete block bricks-all of which have contributed to environmental protection.

Furthermore, the Renewable Energy Policy of Bangladesh, in effect since 2009, aims to achieve a 10 per cent increase in renewable energy sources by 2020. To promote energy efficiency, the government established the Sustainable and Renewable Energy Development Authority (SREDA) in 2012 and was one of the first members of the International Renewable Energy Agency (IRENA), the only intergovernmental organisation focused exclusively on renewable energy. Renewable energy sources in Bangladesh include solar and wind power generation, hydroelectricity, biogas production from waste, and biomass gasification using natural products like wood and rice husks.

In alignment with global efforts to combat climate change, Bangladesh made significant strides by introducing the Climate Change Trust Fund in 2009 to support climate change adaptation. Despite contributing less than 1 per cent of global carbon emissions, Being one of the most climate-vulnerable countries, Bangladesh has shown a strong commitment to achieving the Sustainable Development Goals outlined in the Paris Agreement. As part of this commitment, the country has set an ambitious target of generating 40 per cent of its energy from renewable sources by 2041, with a draft national solar energy action plan proposing around 41 gigawatts of solar generation by the same time frame. On May 12, 2024, Dhaka North and South City Corporations (DNCC and DSCC) introduced Dhaka's first climate action plans aligned with the Paris Agreement. These plans outline the steps for Dhaka North and Dhaka South to achieve carbon neutrality by 2050, supporting Bangladesh's national goal of reducing emissions by 89.47 MtCO2e by 2030. There are also private sector brands, including Prokritee, Jatra, Deshal, Clay Station, and Aarong Earth, that contribute to Bangladesh's growing movement towards sustainability and environmental responsibility, offering consumers eco-friendly alternatives across various product categories.

Given these initiatives for environmental sustainability, it is essential for policymakers and businesses to promote pro-environmental behaviour at the individual consumer level. The optimistic and rapidly growing consumer base in Bangladesh presents a significant opportunity for fostering green consumption habits. A survey conducted by the Boston Consulting Group reports that Bangladesh is a significant growth market for consumer products, with 2 million new consumers joining the ranks of the middle class and affluent every two years. The report also highlights that Bangladeshi consumers are among the most optimistic globally, with a strong concern for improving living standards for the next generation. This suggests a growing awareness of sustainability issues, particularly among millennial consumers.

With a median age of 24, Bangladesh has a young and growing workforce that will drive increased consumption in the coming decades. Younger Millennials (18-24 years old) represent a significant portion of the population and exert considerable influence on household purchase decisions. This demographic is predicted to become power consumers, making it an attractive target for marketers. Millennials, in general, tend to be environmentally conscious, with many expressing a willingness to purchase green products. Research shows that Millennials value interpersonal relationships that shape their green attitudes and behaviour.

Young consumers are often seen as a promising market for environment-friendly consumption due to their openness to new ideas and heightened awareness of social and environmental issues. Policymakers and marketers must recognise that younger Millennials in Bangladesh are a crucial market for promoting green consumption, as suggested by recent studies in other emerging Asian markets. This consumer segment is increasingly aware of environmental destruction and climate change, particularly in the context of Bangladesh's environmental vulnerability.

A study on young consumers in Bangladesh suggests that younger Millennials in emerging markets believe their individual efforts can contribute to mitigating environmental problems. Marketers should view this as an opportunity to promote and encourage green consumption among these potential consumers in emerging Asian markets through effective green marketing strategies.

In Bangladesh, consumers often prioritise the immediate needs of their large households, which average five members, over personal spending, a trend more pronounced than in many other emerging Asian markets. According to a survey conducted by the Boston Consulting Group, 75 per cent of Bangladeshi consumers agreed with the statement, "I never spend money on myself until the needs of my family are met." Another study on young consumers in Bangladesh suggests that peer influence plays a significant role in consumption behaviour, which is typical in a collectivist society.

Green marketing strategies could focus on raising awareness about the social pressures of environmentally responsible consumption among younger Millennials by showcasing examples of such behaviour practised by community members and environmental groups. Social media platforms would be an ideal medium for this promotion.

Younger Millennials in countries like Bangladesh believe that their actions can help reduce environmental damage. To encourage them to adopt environment-friendly habits, it's crucial to reinforce their confidence in their ability to make a difference, especially in the face of the severe challenges posed by climate change. Marketers can tap into this belief by clearly demonstrating the tangible benefits of eco-friendly products-such as better taste, improved health, and a cleaner environment-through product packaging and advertisements.

Dr. Khan M.R. Taufique is a fulltime faculty member of Oxford Brookes Business School, UK and a visiting Associate Professor of American International University Bangladesh (AIUB). [email protected], [email protected]